Introduction
Global Business Services (GBS) represents a critical driver of optimized performance across business services and serves as a primary vehicle for digital transformation within organizations. The concept encompasses various interpretations, ranging from small offshore centers to comprehensive transformational engines that combine digital transformation with shared services. The professionalization of GBS is paramount, as a professional organization typically delivers two to three times more value than a do-it-yourself approach.
Definition and Evolution
GBS has evolved significantly from its origins in shared services, which were initially created to achieve cost savings through standardization, aggregation, and centralization of transactional work. The adoption of the GBS model is accelerating, with 62% of shared services organizations either transitioning to or already operating under the GBS model, focusing on scaling and moving towards digital services. The influence of the service delivery model continues to grow, with 60% of shared services leaders now reporting directly to the C-suite (CFO, CEO, CIO), reflecting GBS’s increasing strategic importance.
Core Components and Value Proposition
Operating Model The GBS operating model includes nine essential building blocks: service management, financial model, customer engagement, operations management, transformation management, organizational design, sourcing strategy, technology enablement, and performance management. This comprehensive framework ensures consistency, scalability, and alignment with business objectives.
Value Creation The ultimate goal of GBS is to deliver exponential value to the organization by aligning services with business objectives, driving efficiency, and enabling growth through innovation and transformation. Value creation extends beyond cost reduction to include sales growth, asset efficiency, and overall business transformation.
Maturity Stages
The evolution of GBS typically follows four distinct stages:
Stage 1: Piecemeal GBS Organizations begin with fragmented and siloed operations, focusing on cost reduction and standardization within specific functions or geographies.
Stage 2: Global Integration The scope expands to include multiple functions or regions, achieving greater efficiency and standardization through consolidated operations.
Stage 3: Value Creation Optimization Organizations leverage GBS data and analytics to drive revenue growth, improve asset efficiency, and create new business models, delivering three times the value of cost-focused GBS.
Stage 4: Digital Transformation The most mature stage involves disruptive innovation, where GBS organizations challenge traditional processes and adopt transformative approaches, such as using AI to eliminate entire processes.
Key Success Factors
Professional Operating Model A professionally run GBS operates with standard processes, methodologies, and frameworks, ensuring consistency, scalability, and the ability to deliver measurable results. This includes clear governance structures and unified engagement models.
Strategic Alignment GBS must continuously evolve to remain relevant, leveraging its unique position at the intersection of process, technology, and business information. This requires adapting to changes in technology, business needs, and market conditions.
Leadership and Culture Success depends on strong leadership, clear governance, and the ability to drive change management and transformation across the enterprise. GBS leaders must adopt an entrepreneurial mindset, treating their services as products with defined value propositions, market strategies, and innovation roadmaps.
Conclusion
GBS represents a transformative approach to business services delivery, offering organizations the potential to achieve significant operational improvements and strategic advantages. The journey to GBS excellence requires a deliberate focus on building foundational capabilities, expanding scope strategically, and continuously enhancing value creation through innovation and transformation. As organizations continue to evolve, GBS will play an increasingly crucial role in driving digital transformation and delivering measurable business outcomes that go beyond traditional cost savings.